The state of the automotive industry
The automotive industry in the Philippines consists of motor vehicle assembly, importation and distribution, rebuilding, and the manufacturing of parts and components. This sector has been the highest contributor to the country's gross domestic product (GDP) in 2023, at about 19 percent. Working alongside small, underdeveloped firms are large foreign-owned companies, such as Toyota, Honda, Mitsubishi, Nissan, and Isuzu. The domestic auto parts industry produces materials for both the original equipment manufacturer (OEM) and the aftermarket or the replacement market.In 2023, about 321,000 commercial vehicles (SUVs, multipurpose vehicles, pickups, vans, buses, and trucks) and 109,000 passenger cars were sold in the Philippines. Japanese brand Toyota holds about half of the entire automotive market, followed by Mitsubishi and Ford. Toyota Motor Philippines Corporation (TMP) has been responsible for creating Philippine-made vehicles since 1962 and sold eight out of 10 leading car models in 2023. Meanwhile, Sarao Motors has pioneered the production and distribution of jeepneys, the most popular mode of public transportation.
Passenger vehicle ownership and electric vehicles
Despite the availability of modes of public transportation and traffic congestion in leading cities in the Philippines, several Filipino consumers still opt to purchase private vehicles. In 2022, large and small sport-utility vehicles (SUVs) were the most sold passenger car type, given the large size of Filipino families and households. Among premium car brands, Lexus had the highest unit sales in 2023. Aside from cars, most Filipino households own a motorcycle or tricycle since they are more affordable.Meanwhile, interest in electric vehicles among Filipinos was also heightened recently, with an estimated 1,013 electric vehicles sold as of June 2022. Electric vehicle sales were also expected to grow with the jeepney modernization program that aims to phase out those with machines older than 15 years. A recent survey also revealed that a large share of Filipino respondents would choose an electric vehicle over a conventional one for environmental reasons. However, they would only do so if such cars were cheaper than conventional ones.
